Canada Gas-to-Liquids Project Volume 1: Project Description May 2013 Prepared for: SASOL Canada Holdings Limited Calgary, Alberta Prepared by: Stantec Consulting Ltd. Calgary, Alberta Project Number: 123510707 Canada Gas-to-Liquids Project Volume 1: Project Description Sasol Canada Holdings Limited Table of Contents Table of Contents 1 INTRODUCTION ........................................................................................................................... 1-1 1.1 APPLICATION .............................................................................................................................. 1-1 1.2 PROJECT PROPONENT.............................................................................................................. 1-1 1.3 THE PROJECT ............................................................................................................................. 1-2 1.3.1 Description .................................................................................................................... 1-2 1.3.2 Site Selection ................................................................................................................ 1-3 1.3.3 Location ........................................................................................................................ 1-3 1.3.4 Scope and Capacity ...................................................................................................... 1-5 1.4 SCHEDULE ................................................................................................................................... 1-5 1.5 NEED FOR THE PROJECT ......................................................................................................... 1-6 1.6 PROJECT BENEFITS ................................................................................................................... 1-8 1.7 ALTERNATIVES TO THE PROJECT ........................................................................................... 1-9 1.8 REGULATORY APPROVALS ...................................................................................................... 1-9 1.8.1 Ancillary Approvals ..................................................................................................... 1-10 1.9 CONTENTS OF THE APPLICATION ......................................................................................... 1-11 1.10 COMMUNICATION WITH APPLICANT ...................................................................................... 1-12 2 PUBLIC CONSULTATION ........................................................................................................... 2-1 2.1 INTRODUCTION ........................................................................................................................... 2-1 2.2 STRATEGIC FRAMEWORK AND APPROACH ........................................................................... 2-1 2.2.1 Phase 1 ......................................................................................................................... 2-1 2.2.2 Phase 2 ......................................................................................................................... 2-2 2.2.3 Program Commitment and Guiding Principles ............................................................. 2-2 2.2.4 Program Goals .............................................................................................................. 2-3 2.2.5 Regulatory Expectations ............................................................................................... 2-4 2.2.5.1 Socio-Economic Assessment .................................................................... 2-4 2.2.5.2 Public Disclosure ....................................................................................... 2-4 2.2.5.3 Proposed Terms of Reference for EIA ...................................................... 2-5 2.2.5.4 Final Terms of Reference for EIA.............................................................. 2-5 2.2.5.5 Program Monitoring and Evaluation .......................................................... 2-6 2.3 PUBLIC CONSULTATION PROGRAM ........................................................................................ 2-6 2.3.1 Identified Communities and Stakeholders .................................................................... 2-6 2.3.2 Consultation Activities ................................................................................................... 2-8 2.3.2.1 Consultation Materials ............................................................................... 2-9 2.3.3 Community-Based Consultation Activities .................................................................... 2-9 2.3.3.1 Open House .............................................................................................. 2-9 2.3.3.2 Collaboration with Government ............................................................... 2-10 2.3.3.3 Collaboration with Aboriginal Community ............................................... 2-11 2.3.3.4 Collaboration with Industry ...................................................................... 2-12 2.3.3.5 Collaboration with Environmental Groups ............................................... 2-12 2.3.3.6 Collaboration with Non-government Organizations ................................ 2-12 2.3.3.7 Regional Collaboration ............................................................................ 2-13 2.4 PUBLIC CONSULTATION PROGRAM OUTCOMES – SUMMARY .......................................... 2-13 2.4.1 Public Consultation Influence on the Project .............................................................. 2-16 May 2013 i Canada Gas-to-Liquids Project Volume 1: Project Description Table of Contents Sasol Canada Holdings Limited 2.5 COMMITMENT TO CONTINUING CONSULTATION ................................................................ 2-16 2.5.1 Public Consultation Program – Next Stage ................................................................ 2-17 2.5.2 Contributing to Community Quality of Life .................................................................. 2-17 3 PROCESS DESCRIPTION ........................................................................................................... 3-1 3.1 INTRODUCTION ........................................................................................................................... 3-1 3.2 PROJECT OVERVIEW ................................................................................................................. 3-1 TM 3.3 SASOL SLURRY PHASE DISTILLATE PROCESS .................................................................. 3-3 3.3.1 Synthesis Gas Unit ....................................................................................................... 3-4 3.3.2 Fischer Tropsch Synthesis Unit .................................................................................... 3-7 3.3.3 Heavy Ends Recovery Unit ........................................................................................... 3-9 3.3.4 Water Treatment Unit ................................................................................................... 3-9 3.3.5 Product Upgrading Unit .............................................................................................. 3-12 3.4 SUPPORTING PROCESS UNITS .............................................................................................. 3-17 3.4.1 Hydrogen Production Unit ........................................................................................... 3-17 3.4.2 Air Separation Unit ...................................................................................................... 3-17 3.5 UTILITY SYSTEM OVERVIEW .................................................................................................. 3-20 3.5.1 Water and Effluent Systems ....................................................................................... 3-21 3.5.1.1 Raw Water Source .................................................................................. 3-21 3.5.1.2 Raw Water Treatment ............................................................................. 3-21 3.5.1.3 Cooling Water .......................................................................................... 3-24 3.5.1.4 Effluent and Bioeffluent ........................................................................... 3-24 3.5.1.5 Water Treatment ..................................................................................... 3-25 3.5.2 Steam, Condensate, Boiler Feed Water and Power Systems .................................... 3-26 3.5.2.1 Saturated Steam ..................................................................................... 3-26 3.5.2.2 Superheated Steam ................................................................................ 3-28 3.5.2.3 Condensate and Boiler Feed Water ........................................................ 3-28 3.5.2.4 Power Systems ....................................................................................... 3-29 3.5.3 Fuel System ................................................................................................................ 3-29 3.5.3.1 Natural Gas ............................................................................................. 3-31 3.5.3.2 Fuel Gas .................................................................................................. 3-31 3.5.3.3 Oxygenated hydrocarbons ...................................................................... 3-31 3.5.3.4